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1 This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: National Income and Its Composition, , Volume II Volume Author/Editor: Simon Kuznets, assisted by Lillian Epstein and Elizabeth Jenks Volume Publisher: NBER Volume URL: Publication Date: 1946 Chapter Title: Basic Data, Sources and Methods: Miscellaneous Chapter Author: Simon Kuznets, Lillian Epstein, Elizabeth Jenks Chapter URL: Chapter pages in book: (p )

2 Miscellaneous TABLES Msi Ms3 Whenever two entries are made for 1934 the first is comparable with these for preceding years in that the Statistics of Income data used are based on the old industrial classification; the second is comparable with those for succeeding years in that the Statistics of income data used are based on the new industrial classification. Net savings and net income, adjusted, exclude gains and losses from sales of capital assets, , and from changes in inventory valuation, Net savings and net income without any specific designation are unadjusted, i.e., include these two types of gain and loss.

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4 MISCELLANEOUS Ms i Total Payments by Type (millions of dollars) PROPERTY INCOME Div.& PAY.TO WAGES Sc ENTREP. Dlvi- mt., inter- SALARIES WITHDR. dends Interest national Total INDIVIDUALS (1) (2) (3) (4) (6) (7) , , , , i , , o 347 2, , , ,842 g6.i , ,984 4L , , , , , , i ii 3, , '930 2, , , , , , , , , to8 2, , io , , , , , , , , i ,189 84i Ms 2 Net Tncome Originating (millions of dollars) PAV.TO ENTREPRENEURIAL NET INI)IVID- Net Net NET SAVINGS NET NET SAVINGS, ADJ. INCOME, UALS savings income Corp. Total INCOME Corp. Total ADJ. (1) (2) (s) (i,) (6) ('i) (8) (g) , i , , , igs 2, , , , , , , g8.g 2, , , , , , , , '88 5, s,o , , , , gg.6 3, , , , , io , , , , , ,131 1,162 1, , , i,oi8 1,120 1, ,127 '93) 2, , ,008 '934 2, i,86z , , , , , , , , , , , i8g 5, , , i6g 175 3, ,005

5 842 PART FOUR Ms Persons Engaged (thousands) EMPLOYEES ENTREPRENEURS TOTAL (i) (2) , , , , , , ',ig , , , , , , , , , i,88g , , , ,049 1, , , , , , , ,838 '934 1, ,910 '935 1; , , ,112 ' , , ,179 TABLE Ms i Total Payments by Type Col..r Wages and salaries: sum of estimates for subgroups. Estimates for are made separately for (1) common carrier buses, (2) sightseeing buses, motor trucking and warehousing, taxicabs, air transportation, (6) harborcraft, (7) special banks, (8) brokerage, (9) fisheries, (io) unclassified. The figures for special banks are sums of estimates for joint stock land banks, the Regional Agricultural Credit Corporation, Federal Intermediate Credit Banks, Federal Land Banks, Banks for Cooperatives, Production Credit Corporation, Production Credit Association, Federal Home Loan Banks, and General Agents. For this period the estimates are derived by the method used by the Bureau of Foreign and Domestic Commerce, National Income Division, with materials supplied by it. + For ig the entries are the sum of estimates for (i) motor

6 MISCELLANEOUS 843 transportation, (2) miscellaneous banking and brokerage, air transportation, (4) fisheries, unclassified, including harborcraft. For each, subgroup, wages and salaries are estimated by multiplying the number of employees (see the notes to Table Ms 3) by the average pay. The average pay in 1929 for each subgroup is extrapolated to 1919 by the estimated average pay of employees iii construction, trade, and service. Col. 2 Entrepreneurial withdrawals: for the entries are the sum of estimates for (i) motor trucking and warehousing, (2) taxicabs, harborcraft, (4) brokerage, (5) fisheries. It is assumed that there axe no entrepreneurs in the other fields. The estimates are derived by the method used by the Bureau of Foreign and Domestic Commerce, National Income Division, with materials supplied by it. For the entries are the sum of estimates for (i) motor transportation, (2) harborcraft, brokerage, (4) fisheries. Withdrawalls are estimated by multiplying the number of entrepreneurs (see the notes to Table Ms by the average withdrawal. The average withdrawal, computed for 1929, is extrapolated to 1919 for each subgroup by the estimated average withdrawal of entrepreneurs in construction, trade, and service. Col. Dividends: difference between total dividends paid and dividends received. The payments of all industries not covered separately are included: (i) forestry, fishing, and related industries, (2) air transportation, (3) autobus lines, etc., (4) cartage and storage, radio broadcasting, (6) water companies, (7) 'other' public utilitie:;, (8) joint stock land banks, (g) stock and bond brokers, etc., (io) loan companies, (i i) corporations, nature of business not given. For all these industries both dividends paid and received in i are from the special tabulation of Statistics of Income data. Net dividends for 1934 comparable with those for prior years are the difference between net dividends of all industries and net divi- (lends of all industries other than miscellaneous. The 1933 figure for net dividends of all industries is the sum of dividends of miscellaneous and all other industries. The figure for 1934 comparable with that for 1933 is obtained by extrapolating the 1933 figure by the item for all industries other than miscellaneous. Estimates of net dividends paid for the years before 1926 are extrapolated from 1926 by the total for all other industries. The

7 844 PART FOUR 1938 figure is extrapolated from the 1937 figure by the corporate sample for the industry. Col..,t Interest: difference between total interest paid on long term debt and interest received on tax-exempt obligations. The industries covered are the same as for dividends. Total interest payments, , are estimated by applying to the par value of long term debt the average interest rate derived for all other industries. Long term debt outstanding on December 3', , reported in the special tabulation of Statistics of Income data, is raised to the total by a ratio derived as follows: From the capital stock tax returns for 1924, published in Statistics of Income, we derived the ratio of the fair value of the stock of all corporations to the fair value of the stock of corporations reporting assets and liabilities for industries related to agriculture; local transportation, etc.; water works; storage companies; 'all other' public utilities; lessors of public utilities; stocks and bonds, etc.; 'all other' financial combinations; combinations, predominant industry not ascertainable; nominal concerns; exempt corporations. The ratio for all corporations is also derived. The ratio for corporations in the miscellaneous industries is extrapolated for by the ratio for all corporations. The ratio for all corporations for is the ratio of compiled receipts of all corporations to those of corporations filing balance sheets. For 1930 the 1931 ratio is used. The interest rate used is obtained by dividing total interest payments by the industrial divisions estimated separately by December 31 figures on their total long term debt outstanding. Total interest payments for the years before 1930, for 1934 comparable with prior years, and for are extrapolated from 1930, 1933, and respectively, by total interest payments by all other industries. Interest received on tax-exempt obligations is reported for (1934 comparable with in the special tabulation of Statistics of Income data. Estimates for are extrapolated from 1926, and for '934 comparable with from 1933 by total interest received by all other industries. In 1938 interest received is assumed to have the same relation to interest paid as in Cot. Dividends and interest, international: difference between receipts from long term foreign investments and payments to for-

8 MISCElLANEOUS 845 eign investors. In estimating these two series for 1929 and later years the sources and methods of the Bureau of Foreign and Domestic Commerce, National Income Division, are used. The 1929 figures are extrapolated to 1919 by data supplied by Paul D. Dickens of the Bureau of Foreign and Domestic Commerce, Finance Division, and additional data from the Balance of International Payments of the United States. Col. 6 Property income: sum of col. Col. y' Total payments to individuals: sum of col. 1, 2, and 6. TABLE Ms 2 Net Income Originating Col. i Total payments to individuals: see Table Ms 1, col. 7. Col. 2 Entrepreneurial net savings: sum of estimates for (i) motor trucking, (2) fisheries, (3) brokerage. It is assumed that for all other di.vision3 the entire net income is withdrawn. The estimates for motor trucking and fisheries, , are from the Bureau of Foreign and Domestic Commerce, National Tncome Division. For brokerage the estimates of individuals' savings, , are derived on the assumption that the relation of withdrawals to savings is the same as that for entrepreneurs in manufacturing, mining, construction, and trade. For tile years before 1929 savings are estimated by applying to the estimated withdrawals the ratio of savings to withdrawals, computed for 1929 and extrapolated by the corresponding ratio for manufacturing, mining, construction, and trade. Cot Entrepreneurial net income: sum of col. 2, Table Ms i, and col. 2, above. Cot Corporate net savings: difference between compiled net profits after taxes and total dividends paid. The industries covered are those listed in the notes to Table Ms 1, col. Compiled net profits after taxes are reported for in the special i.abulation of Statistics of Income data. Dividend payments are described in the notes to Table Ms 1, col. The resulting series on corporate savings, obtained by subtraction for , is extrapolated for , and for 1934 comparable with '933, by total corporate savings of all other industries. Corporate savings in 1938 are assumed to be the same as in 1937.

9 846 PART FOUR Cot Total net savings: sum of col. 2 and 4. Col. 6 Net income originating: sum of col. i and 5. TABLE Ms 3 Persons Engaged Cot. x Employees: for 1929 and later years, the sum of estimates of employees in (i) common carrier buses, (2) sightseeing buses, motor trucking and warehousing, (4) taxicabs, air transportation, (6) harborcraft, (7) special banks, (8) brokerage, (9) fisheries, (to) unclassified. For the institutions covered under (7) see the notes to Table Ms i. For this period the sources and methods of the Bureau of Foreign and Domestic Commerce, National Income Division, are used. For the estimates are the sum of employees in (i) motor transportation, (2) miscellaneous banking and brokerage, air transportation, (4) fisheries, unclassified, including harborcraft. The method used to derive estimates for the years before 1929 is the same for all groups except the unclassified. In each case the number engaged in 1929 is the sum of employees and entrepreneurs. In the 1930 Census of Population, Vol. V, Ch. i, figures on the gainfully occupied in representative occupations on January i, 1920 and April 1, 1930 are reported. We assume that there was the same percentage of unemployment in 1920 as in Therefore, given the number engaged in 1929, we apply to it the percentage change from 1920 to 1929 in the number attached to representative occupations, the 1929 figure for which is obtained by interpolating along a straight line between Census dates. The estimates of the number engaged in are interpolated between 1920 and 1929 by the number engaged in all other industries; 1919 is extrapolated from 1920 by the same index. Employees are estimated by subtracting entrepreneurs (see the notes to col. 2) from the total engaged. For (s), the unclassified division, the number engaged is extrapolated from 1929 by the number engaged in trade, service, and the other four miscellaneous divisions. Employees are estimated by subtracting entrepreneurs (see the notes to col. 2) from the total engaged.

10 MISCELLANEOUS 847 The representative occupations used in estimating the 1920 figures for the number engaged are: z) Motor transportation: chauffeurs, truck and tractor drivers; draymen.. teamsters and carriage drivers; laborers, truck, transfer and cab companies; owners and managers, truck, transfer and cab companies 2) Misceilaneous banking and brokerage: commercial brokers and commission men, loan brokers, stock brokers and brokers, not elsewhere classified 3) Air transportation: aviators 4) Fisheries: fishermen and oystermen Col. 2 Entrepreneurs: for the derivation of the estimates for see the notes to col. 1. For they are the sum of the estimates for the five divisions listed in the notes to col. 1, which were based on estimates of the total engaged in 1920 and 1929, as there described, and on the assumption that the percentage of entrepreneurs to the total engaged is the same in 1920 as in Figures for i 919 and for are extrapolated and interpolated along a straight line. Cot. 3 Total number engaged: sum of col. 1 and 2.

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